Bill > S02040

This bill requires money transmission businesses to provide a clear and prominent warning to consumers before completing funds transfers, aimed at preventing consumer fraud. Specifically, the law mandates that when an individual requests a money transfer in person, by phone, or electronically, the transmitter must display a warning with several key components: a bold, capitalized title stating "Warning: do not fall victim to consumer fraud," information about potential fraud risks like lottery scams and unsolicited offers, guidance on how to ask questions about the transfer, and instructions on how to stop a transfer. The warning must be "clearly and prominently" displayed, which means in written communications it should be on the same form as the transfer authorization or via a noticeable sign, using a readable and contrasting font size, and in oral communications it must be delivered at a volume and pace that an ordinary consumer can understand. The bill excludes certain electronic fund transfers from these requirements, such as those not directly transferred to another person or made with gift certificates. Violations of this law will result in civil penalties of up to $250 for a first offense and $500 for subsequent offenses. The law will take effect 180 days after becoming official.